Information services company Experian has rolled out 4D Credit, a suite of services aimed at helping lenders to better manage their commercial lending portfolio and support SMEs. Commercial lenders have access to Experian’s credit risk data and analytics capabilities all in one place.

4D Credit provides a ‘full picture’ view of affordability, growth, survivability, and risk by sourcing and analysing a range of relevant data sources, including credit consumption, payment behaviour, and current account turnover. Experian study reveals lender concerns Recent research from Experian, which surveyed over 200 lenders, found that 33% said current affordability processes and data aren’t sufficient enough to meet the requirements of Consumer Duty. 59% said their data and technology needs updating for them to be fully confident that they are ensuring the good customer outcomes that Consumer Duty demands.

Further Experian research found that over half (58%) of small businesses agree Consumer Duty regulation will help protect businesses as well as consumers. Officials from Experian said their new suite of services comes at an important time as not only are they seeing significant changes being driven by the Consumer Duty regulation, but many UK small businesses are also looking to push on against a backdrop of rising inflation and the strain of high energy costs. Enabling lenders to deliver personalised approaches The company aims that by providing lenders with the relevant tools, it allows them to offer a highly personalised approach to risk assessments and affordability, and gives valuable insight to support new and existing customers when access to finance is most needed.

Getting this level of understanding provides a much better foundation to help their customers thrive and survive in this increasingly difficult environment. 4D Credit helps lenders make the most informed credit decisions, whilst managing risk effectively. It also allows a more accurate lending process by using a wider set of criteria to segment customers and prospects and identify new cohorts that may sit just outside risk appetite but have mitigating factors.

Lenders also have access to Experian’s unique Survivability Score, a measure of the long-term life expectancy of a small business, and High Growth Score, which identifies small businesses with considerable growth potential based on their financial profile, performance to date, and the track-record of the individuals running the business. .